Now that we’re well into the fall season, Rhode Island’s housing market is settling into a more balanced rhythm. The latest data from the Rhode Island Association of REALTORS® (reflecting August activity) continues to show growing inventory and steadier price appreciation. When paired with lending and buyer activity trends observed through September, the picture points to a market that is still competitive but showing signs of moderation as we move closer to year’s end..

Steady growth in housing supply and slower price gains are signaling a more balanced market ahead.

Inventory on the Rise

According to the Rhode Island Association of REALTORS®, housing supply continued to build through August.

• If no new homes were listed, current single-family inventory would sell in just 2.8 months.

• While that’s still half the time considered a balanced market, it’s the most consistent inventory growth Rhode Island has seen since 2015, when the state began its long run as a seller’s market.

2025 could be the first year to show steady, month-to-month gains in housing supply in nearly a decade.

Prices Up, But More Slowly

The median sales price of a single-family home in August was $510,000, a 4% increase year-over-year.

• Closed sales fell by 4.6%.

• Pending sales dipped 2.3%, suggesting a moderation in buyer activity heading into the fall and winter months.

This pattern indicates that while values remain strong, the pace of appreciation is beginning to ease, which is welcome news for buyers who’ve been waiting for more breathing room.

Mortgage Rates: Calm Before the Data

According to Adam Dellemonico of Movement Mortgage, the lending landscape has been unusually steady in recent weeks:

“After all the volatility that followed the Fed’s announcement in mid-September, the following weeks have felt unusually calm—and the reason is simple: the market is waiting for the jobs report…That report is a big deal because it helps set the tone for what happens next with rates.”  —Adam Dellemonico, Movement Mortgage

Dellemonico notes that because the government shutdown delayed key employment data, mortgage rates have been holding steady.

• A slower labor market could help ease rates.

• Strong job growth might keep them higher for now.

Katy’s Takeaway

We’re seeing a gradual shift toward balance:

• Home values are rising at a slower pace.

• Inventory is growing after a long shortage.

• Rates are steady but poised to adjust once economic data resumes.

It’s still a seller’s market, but this moment presents an opportunity for buyers ready to move while inventory holds and competition cools.

PRO TIPS:

For buyers: Take advantage of the fall inventory before it tightens again in winter. With prices leveling off and rates holding steady, buyers have a rare window to negotiate strategically—especially on homes that have been sitting a few weeks longer than expected.

For sellers: While buyer activity has softened slightly, motivated buyers are still out there and they’re serious. Pricing your home accurately and presenting it well from day one can help you capture attention in a market that’s beginning to show more choice and selectivity.

With market dynamics shifting quickly, navigating today’s real estate landscape can feel overwhelming. That’s why working with a knowledgeable local agent matters more than ever. Whether you’re buying your first home, making a move, or preparing to sell, Homes By Connect can help you:

• Understand what’s really happening in the local market

• Strategically price and prepare your home for a successful sale

• Explore financing and timing options that align with your goals

Let’s talk about your next move and how to make it a smart one. Contact us today for expert advice and personalized support.

Katy Donovan is the Broker/Owner of Homes By Connect and The Donovan Group in Portsmouth, Rhode Island.

Data Points provided by the Rhode Island Association of Realtors®.